Pakistan’s debt has skyrocketed to over Rs81 trillion, placing a burden of approximately Rs325,000 on each citizen, as disclosed to the Senate’s Standing Committee on Economic Affairs on April 2, 2026.
In a detailed presentation, officials from the Economic Affair Division highlighted that external liabilities constitute over Rs26 trillion, while domestic borrowings have surpassed Rs55 trillion. The fiscal deficit was identified as a principal factor driving the increase in debt, necessitating further borrowing to cover the shortfall.
The depreciation of the Pakistani rupee has exacerbated the debt situation, inflating the burden. Concerns were raised by the committee about the concentration of economic policy-making power in the hands of parliament alone.
It was noted that the Khyber-Pakhtunkhwa government had taken a loan of Rs300 billion, which remains unutilized, yet interest payments continue to be made. The committee emphasized the need for strategic financial planning to mitigate future risks.
Published in SouthAsianDesk, April 3, 2026
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